The following data are from BBC Inc. accounting records at December 31, 2018. Sales ........................................................................500,000 Raw materials
Question:
The following data are from BBC Inc. accounting records at December 31, 2018.
Sales ........................................................................500,000
Raw materials inventory, beginning ........................8,000
Raw material ending .................................................4,000
Purchase of raw materials (To be determined)
Direct labour ............................................................30,000
Prime cost (total) ...................................................110,000
Indirect materials................................................... 20,000
Commissions ...........................................................36,000
Work in process beginning inventory .....................8000
Work in process ending inventory ..........................6000
Depreciation - equipment ....................................20,000
Depreciation - factory ............................................22,000
Finished good inventory beginning .....................10,000
Finished good inventory ending (To be determined)
Maintenance expense ..............................................8,000
General office salaries ............................................86,000
Additional Info:
1) Cost of good manufactured of last year was $10 per unit
2) Maintenance expense: 80% apply to manufacturing function
3)The sale price per unit was equal to 35$ during the year
4) Assume BBC Inc. uses FIFO
5) There were 2,500 units in the ending inventory of finished goods
Question:
Prepare the schedule of COGM for year 2018. Calculate Production in units and cost of goods manufactured per unit.
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso